Tweets

@portertech Sorry. It’s your choice.

@mattragland I dig this

(thanks a lot @ratiovernon. I could've been rich like Elon)

You too can be a multibillionaire! https://twitter.com/StephenPunwasi/status/1348329165502746626

@podcastharry @misener I’ve written a guide here:

https://transistor.fm/ideas-promote-podcast/

@chair6 hahaha.

not talking about ❤️ (that's gotta be there too), and conceivably the 🎮 couldn't have happened without the 🛹...

but the unit economics + volumes are interesting

@roqueadeleon Not sure what it is now.

My numbers are actually off because this is from 2008:

https://abcnews.go.com/Business/story?id=4418514&page=1

Another funny example:

Tony Hawk owns his own skateboard company (Birdhouse).

My guess, based on market share, is he's sold 1-2 million decks in the past 10 years.

But over the past decade, his video games have sold over 31 million copies.

He's rich from 🎮 not 🛹.

Just wrote this up for my upcoming Saturday newsletter.

Anyone here want to give me some feedback? (Ways to improve, make it better/more clear)

https://justinjackson.ca/units

Generally, you're either in a low-volume business (with a high price), or a high-volume business (with low prices).

And (again, generally):

👩‍💻 Most consulting/services businesses are low-volume/high-price
💾 Most SaaS/digital products businesses are high-volume/low-price

High-volume example:

💰📆 If you want to make $10k / month...

📊 And your margins are 80%,
💲 and your price is $25,
👥 you'll need 400 sales/month

☝️ most SaaS is high-volume (~400 customers to earn $10k / month)

Low-volume example:

💰📆 If you want to make $10k / month...

📊 And your margins are 80%,
👥 but you can only attract 5 sales,
💲 your price is going to need to be $2,500

@erwblo Listen to this whole interview and tell me what you think.

#paragraph_1517" rel="noopener noreferrer">https://www.happyscribe.com/public/how-i-built-this-with-guy-raz/patreon-jack-conte-and-sam-yam#paragraph_1517

So what does this mean for SaaS founders, or creators selling digital products and subscriptions?

📈 Volume
💰 Profit.

Those are your two levers.

How badly do people want it? That's volume.
What's your price and costs? That's profit.

@zerohash By almost every measure, regular "middle class" artists seem to be making less.

https://twitter.com/mijustin/status/1348777368479940608

@erwblo By almost every measure, regular "middle class" artists seem to be making less.

https://twitter.com/mijustin/status/1348777368479940608

“In the recent past it might have been possible to make a middle-class living on your music. In the current streaming economy, the only way to survive is to be huge.”

https://www.theringer.com/tech/2019/1/16/18184314/spotify-music-streaming-service-royalty-payout-model

This is exactly what happened to @pomplamoose: they had good unit economics on iTunes, but bad margins + volume on Spotify.

As @jackconte recounted to @guyraz on @HowIBuiltThis:

https://www.npr.org/2021/01/08/954876726/patreon-jack-conte-and-sam-yam

@takeitev haha. yes! that was my inspiration for this thread.

👥 The market you serve

Let's say an artist has "1,000 true fans." To hit her revenue numbers:

🎵 On iTunes, each fan would need to buy 3-4 new tracks per month. (Difficult, but not impossible)

🟢 On Spotify, each fan would need to stream her music 357 times per month.

📉 Sales volume

🎵 On iTunes, an artist needed to sell 3,623 tracks to earn $2,500 in a month.

🟢 On Spotify, she needs to get 357,143 streams to earn $2,500 in a month.

Because of poor unit economics, the volume required to hit baseline has gone WAY up.

📊 Unit economics

Think about a musician. 👩‍🎤🎸

## She used to make:

🎵 On iTunes:
Retail price: $0.99 / track
Artist profit: $0.69 / track

## But now she makes:

🟢 On Spotify:
Artist profit: $0.007 / stream

Her profit per unit has gone WAY down.

If you're selling anything online, pay attention to these two variables:

1. Unit economics: how profitable is one "unit" of your product or service? (one digital download, 1 month of MRR)

2. Sales volume: how many units can you sell every month?

@leenyburger @balsamiq This was also true for @jonbuda and me when we started @buildyoursaas and @TransistorFM at the same time. 😜

For many months, the podcast was making more monthly revenue than the product. 😄

@bnchrch congrats!

@smithtimmytim Japan is also struggling:

https://www.japantimes.co.jp/news/2021/01/09/national/overloaded-hospitals-japan-coronavirus/

@Shpigford @LaserTweets $2k seems pretty affordable tbh

@misterparker I think the monetary cost is pretty insignificant?

https://www.foxbusiness.com/money/cost-trump-impeachment-taxpayers

@chasewreeves I’m not saying big tech doesn’t need to be regulated.

But saying that tech CEOs are already “kings” isn’t quite right.

Dismantling Section 230 will not be good for small companies or free speech.

A company (like Transistor!) should have the right to kick off ppl who spout hate

@smithtimmytim I agree with a lot of what you’re saying here. ✌️

One nit: “Basically every other country has the pandemic under control.”

That’s not true. This second wave is hammering tons of countries (including Canada!)

https://www.nytimes.com/interactive/2020/world/coronavirus-maps.html?referringSource=articleShare

@evan_greer just read your Fast Company piece (it’s excellent!).

Thanks for laying out the importance of Section 230.

Curious: what do you think of Matt’s idea for expanding the role of the FTC? https://twitter.com/matthewstoller/status/1348454852402274304

@dbchhbr Yup, I like a lot of what @matthewstoller is saying here.

It sounds like the FTC’s mandate and influence would need to be expanded somewhat to accomplish this.

https://www.wileyconnect.com/home/2020/6/15/how-will-the-ftc-respond-to-pressures-to-regulate-social-media

@vanschneider I still write on mine: http://justinjackson.ca

@SamHarrisOrg Currently, folks seem most excited about @hopinofficial.

I attended an event that used it, and it’s definitely the best software I’ve experienced yet.

(Not “amazing” but pretty good)

@mattalexand AWWWW YEAAAAAHH! 🙌

Even though there is a lot of wisdom in the phrase “do the work, even when you don’t feel it,” sometimes the best thing you can do is take a break.

@eclectitech @kwestin @TransistorFM My favorite is Descript:

https://app.descript.com/r/HkLbabKnG

@simonsarris “Being apolitical is a luxury many cannot afford.” – @sol_orwell

@nickbona A landlord doesn’t have to rent to Nazis.

A printing press doesn’t have to print Mein Kampf.

The scale of companies like Amazon is a problem, which needs to be addressed (perhaps by breaking them up).

But we need to give private businesses the choice to not serve hate groups.

🎯 https://twitter.com/ErinBrockovich/status/1347700082704003079

@dvassallo I agree that we need regulation!

But “public utility” doesn’t seem like the right form.

@dvassallo It’s funny, in countries with state-controlled media (Russia, China, North Korea), it seems people CAN’T elect someone new. 🤔

@dvassallo Got it. (I like those regulations btw!)

But what happens if we get an authoritarian President who has different values in mind?

If you want governments to control and regulate big media platforms as “public utilities,” how big is “big?”

Should the NYT be the next public utility? (They allow public comments, just like Twitter)

@dvassallo What rules would you propose they should enact for Twitter’s moderation?

@dvassallo What regulations should the government enact on Twitter if it became a public utility?

@dbchhbr “Maybe, maybe not?”

Care to expand on that? (hardly sounds like a solid policy recommendation)

A central totalitarian government controlling communication channels is the literal definition of “Orwellian.”

@dbchhbr I’m not opposed to some regulation, but “public utility” doesn’t seem to be the right solution.

https://www.mercatus.org/system/files/Perils-of-Classifying-Social-Media-Platforms-Public-Utilities.pdf

Odd to see folks advocating that Twitter should be a “government controlled utility.”

So, you want to fight censorship by giving a central government control over the big social media platforms?

(Personally, as a citizen, I’m more afraid of being censored by the government)

“Treating social media providers as [a public utility] threatens to convert natural monopoly or essential facility claims into self-fulfilling prophecies.”

https://www.mercatus.org/system/files/Perils-of-Classifying-Social-Media-Platforms-Public-Utilities.pdf

@dbchhbr Fine: “government controlled utility.”

So, you want to fight censorship by giving a central government control over the big social media platforms?

(Personally, I’m more afraid of citizens being censored by the government)

@dbchhbr If Twitter became a state-owned utility, wouldn’t the government then control it?

@dbchhbr I’m worried.

If we get a demagogue as president, and they then also have control of the world’s most powerful social media platforms...

Making Twitter a “Government controlled utility” seems awfully close to “authoritarian state-controlled media.”

@smithtimmytim I’m worried.

If we get another demagogue as president, and they then also have control of the world’s most powerful social media platforms...

Making Twitter a “Government controlled utility” seems awfully close to “authoritarian state-controlled media.”

@smithtimmytim There’s a reverse danger here: if a totalitarian government were to also control the word’s most powerful communication platforms... is that not also a huge risk to democracy?

(Agree there needs to be more regulation... but, what exactly?)

@johnnytong Got it.

So you’d like to see all big media companies (Google, Twitter, FB) more regulated?

What kind of regulations are you proposing?

@smithtimmytim I think, by that logic, lots of internet products would have to become government controlled?

(Google, Amazon, iOS, etc)

@dbchhbr I think, by that logic, lots of internet products would have to become government controlled?

(Google, Amazon, iOS, etc)

@dbchhbr Ah. Gotcha. So you want Twitter turned into a government entity?

@smithtimmytim Curious:

If I’m a private book publisher in 1925, should I have to publish and distribute Mein Kampf?

If I’m MailChimp, should I have to let David Duke use my platform?

@johnnytong @dvassallo @JesperBylund @dr If I’m MailChimp and I know you’ve been a bad actor on ConvertKit and ActiveCampaign, you better believe I’m not letting you sign up on my app either.

@rskopecek Agreed... but my point is that a Twitter ban hardly limits Trump’s ability for “speech.”

@dbchhbr But... isn’t there a difference between censorship instituted by a government, and censorship by a private company?

If someone is using MailChimp to incite riots and violence, should MailChimp have the right to kick them off?

@jamesdensmore Thanks for sharing it James!

@johnnytong It’s not the US government that’s pushing any of these actions.

Private companies are not government-states.

The government (that Trump currently leads!) has way more power (military, executive, etc)

@dbchhbr Sorry, why did you send me the original tweet? What was your point?

@johnnytong @dvassallo @JesperBylund @dr If you’re using MailChimp to incite riots and violence and hate crimes, MailChimp has the right to kick you off.

If I’m a private book publisher in 1925, I don’t have to publish and distribute Mein Kampf.

@dbchhbr Russia and China don’t have the 1st Amendment. https://twitter.com/evan_greer/status/1347965784363032577

@francomunizar @chrismessina @joshmanders @dvassallo @dr I think if the President wanted to send an email from the Whitehouse that would “be received by as many citizens as possible” they’d find a way.

Pretty sure they’re not using MailChimp. 😜

@johnnytong 1. I think you’re misunderstanding “Orwellian.” That refers to censorship by a totalitarian state.

2. Pretty sure Twitter has not “erased Trump’s existence online.” 😜

A search for “Trump” on Google reveals billions of results.

Last time I checked, his website is still up.

RT @evan_greer: And finally, I know that whether you think web platforms should be doing more aggressive moderation or think that they shou…

@SweatingCommas I think if the President wanted to send an email from the Whitehouse that would “be received by as many citizens as possible” they’d find a way.

Pretty sure they’re not using MailChimp. 😜

@johnnytong Sorry, what part of this is Orwellian?

The President can also communicate on all these channels:

- National televised address
- News conference (with every major outlet in the world present)
- A massive email list
- Government websites
- His own website
- Emergency broadcast system
- LinkedIn 😜

@JesperBylund @dvassallo @dr What is “fair?”

I frequently see people kicked out of bars screaming “it’s not fair! I didn’t do anything” to the bouncer.

The President could also, conceivably, send a letter to every citizen:

https://www.washingtonpost.com/politics/his-name-on-stimulus-checks-trump-sends-a-gushing-letter-to-90-million-people/2020/04/28/04143a62-8999-11ea-ac8a-fe9b8088e101_story.html

The President can literally text every phone in America.

https://www.newsweek.com/fema-test-presidential-alert-system-allows-trump-you-text-messages-1122602

@dvassallo @JesperBylund @dr Um, Daniel you said: “what if platforms could ban based on race.”

That’s not an “expressed opinion.”

@JesperBylund @dvassallo @dr Ok new metaphor:

If you keep walking into my bar yelling, I can kick you out. You can speak freely on the street, but I don’t have to let you do it in my business.

Nobody is limiting Trump’s ability to speak freely.

@chasewreeves Bad take Chase.

It’s odd that we were just talking about Trump banning TikTok, but now everyone’s freaking out because he got kicked off a social media site.

The government still has way more power than any tech company.

@dvassallo @dr This is false equivalence.

Yes (of course!) banning people because of the color of their skin would be wrong.

But banning someone because of their actions? That’s perfectly reasonable.

If someone comes into my store not wearing a shirt, I can say: “no shirt, no service.”

@realsaadasad I just used ConvertKit’s “cold subscribers” filter (which is probably over-aggressive).

Hey folks, I just did a massive purge of “cold subscribers” from my newsletter list.

If you didn’t get today’s newsletter, but want to keep getting emails from me, you can subscribe here:

http://justinjackson.ca/newsletter

@andrewshell @saasmag Thanks for sharing it!

@jrsowash @TransistorFM Thanks for sharing it!

@arthur_sav @dr The President has a myriad of other massive channels he can use to communicate:

- National televised address
- News conference (with every major outlet in the world present)
- A massive email list
- Every government website
- Emergency broadcast system
- LinkedIn 😜

@taylormaguire @calebporzio You can’t incorporate in Canada with Atlas.

However, Canadians can be shareholders in US C-Corps.

@Shpigford hell yes

@nep @ianlandsman 🎯

@ChrisLaBossiere 🤯

This is a dumbass take, Naval.

1. Twitter has plenty of competitors with more reach.

2. Trump has plenty of other channels (um, national tv address? News conferences on demand?)

3. Trump is still President, Biden’s the next President, and Jack is neither of those things. https://twitter.com/naval/status/1347695996055142403

RT @jonathanstark: Well deserved! I am a huge fan of @TransistorFM and @mijustin

@jonathanstark @TransistorFM Thanks Jonathan!

@scottbolinger Nice! Guess you’re buying lunch today! 🌮🙌

@arvidkahl @tylertringas +1 to “outsides judging things they have no idea about.”

@danidonovan I just became a supporter! Love what you’re doing (and what you stand for).

@CorbettBarr @janelleallen @ClaireSuellen +1 for @BankMercury

@ianlandsman This whole thing is so bat shit unbelievable.

This Hollywood-level evil drama.

🎯 https://twitter.com/DanPriceSeattle/status/1347356340893708289